Peripheral disturbances are unlikely to easily shake the market’s medium-term upward foundation. Institutions suggest positioning for industry trends moving upward by buying on dips.

People’s Finance Network, April 7—On April 7, the A-share market opened its first trading day after the Qingming holiday. During the holiday, overseas markets such as those in Japan and South Korea saw volatile but upward movements. International oil prices and gold prices showed divergent trends, and market risk appetite increased slightly. Against the backdrop of the continued geopolitical conflict in the Middle East and ongoing uncertainty in the international oil price outlook, how the future A-share market performance will unfold has drawn significant attention. Industry insiders believe that, in the short term, the uncertainty surrounding the conflict between the United States and Iran continues to suppress market risk appetite, but it has not shaken the fundamental basis for the A-share market’s long-term upward trajectory. As a series of positive signals gradually becomes more apparent, the market is expected to continue moving higher in the second quarter. Regarding positioning for the next phase, in the short term, it is advisable to continue building positions on dips in industries that benefit from policy support and rising industry trends. The growth direction remains the strongest mainline of this round of market activity. Sub-sectors such as AI computing power, semiconductors, storage, and innovative drugs are also worth watching. (China Securities Journal)